Japan’s Securities and Exchange Law aims to protect investors when buying and trading securities. Secondary market trading is conducted through securities companies or authorized banking institutions, either in the over-the-counter (OTC) market or through securities exchanges.

The Japan Securities Dealers Associations (JSDA) runs the OTC market. A link to Rules and Regulations of the JSDA is provided below. Deals are made on either listed or unlisted bonds, publicly-offered or privately-placed bonds, and for terms of delivery. JSDA also provides a list of foreign securities companies operating in the market. JSDA’s website, and its latest Fact Book, can be accessed by following the links below.

While exchange turnover for bonds is relatively small, these trades play an important role in letting investors know indicative prices of representative issues. Securities companies trading on the Tokyo Stock Exchange (TSE), the Osaka Securities Exchange (OSE), and the Nagoya Stock Exchange (NSE) will assist investors buying and selling listed bonds. Only member companies of an exchange are authorized to trade listed bonds.